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Diamond Offshore Could Be in Deep(water) Trouble Soon

With a large portion of its fleet about to go off contract, Diamond could see a large part of its fleet sitting on the docks.

When you look at Diamond Offshore's(NYSE:DO) fleet, it isn't too surprising that shares are down more than16% so far this year. The company has one of the oldest fleets on the market today and, unlike competitors Noble Corp(NYSE:NE) and Transocean(NYSE:RIG) that plan to shed some of their older assets in spinoffs, Diamond seems to be staying the course. These older assets will be put to the test in the upcoming months, though, because more than 25% of its fleet will be coming off contract with no new one in place. Not only does Diamond need to convince companies to re-up with its fleet, but it also needs to convince them that it is a better option than the several rigs coming online from Transocean and Seadrill (NYSE:SDRL).

Find out more about how Diamond's fleet is performing today, and how much of an impact it will be when those rigs go off contract, by tuning into the video below.